2025 Universal Registration Document

Measurement of provisions

The following factors may cause a material change in the amount of provisions:

• the estimates made using statistical methods on the basis of expenses incurred in previous years to determine after-sales-serviceprovisions;
• the forecasts of expenditures on major maintenance over several years used as a basis for the provisions for obligations to maintain the condition of concession assets, which are estimated taking account of indexation clauses included in construction and civil engineeringcontracts (in particular the TP01, TP02 and TP09 indices for France);
• the estimates of forecast profit or loss on construction contracts, which serve as a basis for the determination of losses on completion(see Note G.16, “Information on construction and service contracts” and Note H.19.3, “Breakdown of current provisions”);
• the discount rates used.

Measurement at fair value

Fair value is the price that would be received from selling an asset or paid to transfer a liability in a normal transaction. It is recognised on the basis of the asset or liability’s main market (or the most advantageous market if there is no main market), i.e. the one that offers the highest volume and activity levels. The fair value of derivative financial instruments includes a “counterparty risk” component for derivatives carried as assets and an “own credit risk” component for derivatives carried as liabilities.

The Group mainly uses fair value in measuring, on a consistent basis, the derivative instruments, cash and cash equivalents, shares in unconsolidated subsidiaries and affiliates, cash management financial assets and identifiable assets and liabilities acquired in business combinations on its balance sheet. The fair value of other financial instruments (particularly debt instruments and assets measured at amortised cost) is stated in Note J.28, “Book and fair value of financial instruments by accounting category”.

To determine these fair values, the Group uses several measurement methods:

• market-based approaches, based on observable market prices or transactions;
• revenue-based approaches, which convert future cash flow into a present value;
• cost-based approaches, which take into account the asset’s physical, technological and economic obsolescence.

The following three-level hierarchy of fair values is used:

• Level 1 – price quoted on an active market. Marketable securities, some shares in unconsolidated subsidiaries and affiliates, and listedbond issues are measured in this way.
• Level 2 – internal model using internal measurement techniques with observable factors. These techniques are based on usual mathematicalcomputation methods, which incorporate observable market data (forward prices, yield curves, etc.). The calculation of the fair value ofmost derivative financial instruments (swaps, caps, floors, etc.) traded over the counter is made on the basis of models commonly usedto price such financial instruments.Every quarter, the internally calculated values of derivatives are checked for consistency with those sent to VINCI by the counterparties.
• Level 3 – internal model using non-observable factors. This model applies to customer relationships and contracts acquired throughbusiness combinations, as well as to holdings of unlisted shares, which, in the absence of an active market, are measured at their cost ofacquisition plus transaction costs.

Measurement of retirement benefit obligations

The Group is involved in defined contribution and defined benefit retirement plans. For defined benefit plans, obligations are measured using the actuarial projected unit credit method based on assumptions such as the discount rate, future increases in wages and salaries, employee turnover, mortality rates and the rate of increase of health expenses. Those obligations may change if assumptions change, most of which are reviewed each year. Details of the assumptions used and how they are determined are given in Note K.29, “Provisions for employee benefits”. The Group considers that the actuarial assumptions used are appropriate and justified in the current conditions.

Measurement of share-based payment expense

The Group recognises a share-based payment expense relating to performance shares and Group savings plans offered to all or some of its employees. This expense is measured on the basis of actuarial calculations. The main actuarial assumptions (volatility, return on shares, etc.) adopted by the Group are described for each plan in Note K.30, “Share-based payments”.

Climate risks

The Group takes climate risks into consideration, based on its best knowledge, as part of its accounts closing assumptions and reflects their potential impact in the financial statements. The process used is described in Note A.3, “Specific arrangements”.

3. Specific arrangements

3.1 Climate risks

The Group has adopted a climate transition plan aligned with the Paris Agreement’s goal of limiting global warming to well below 2°C by the end of the century. The Group thus aims to:

• reduce its direct emissions (Scopes 1 and 2) by 40% by 2030 (from 2018 levels);
• reduce indirect upstream and downstream emissions (Scope 3) by 20% by 2030 (from 2019 levels);
• adapt infrastructure and activities to improve their climate resilience.